A US federal court in Texas plans to dismiss a suit questioning a state law capping property ownership and leasing by Chinese residents, just weeks before it goes into effect. The decision, anticipated Monday, is as the mood between Washington and Beijing remains at an impasse.
A Law Based on Security Fears
The law, SB17, was signed by Texas Governor Greg Abbott in June and will become effective on September 1. It prohibits real estate acquisition by people, businesses, and government agencies from nations that are tagged as a threat to the US such as China, Iran, North Korea, and Russia. The law provides for further additions to the list.
For citizens of China, the restriction is especially severe. While students or workers on visas are still free to purchase their principal residence, they are prohibited from acquiring holiday homes or investment properties. Leasing too is restricted, with lease contracts limited to terms shorter than one year.
Texas has the largest amount of Chinese-owned land in the country, with approximately 50,000 hectares almost half of all Chinese-owned land in the US as reported by the Agriculture Department. Supporters of the law say it is needed to avert foreign control and spying, noting allegations over Chinese-owned land close to military installations.
The Lawsuit and Dismissal
In July, the Chinese American Legal Defense Alliance (CALDA) sued on behalf of three Chinese nationals Qinlin Li, Peng Wang, and Yisi Wang alleging the law is discriminatory and unconstitutional under the 14th Amendment and breaches the federal Fair Housing Act.
Attorney Justin Sadowsky, who represents the plaintiffs, said Judge Charles Eskridge will dismiss the lawsuit on the grounds of “standing,” that is, that the court feels the plaintiffs do not have legal basis to sue. Sadowsky added that he will appeal, contending the law will continue to instill fear and possible harm for thousands of Chinese residents in Texas.
This is not the first time the Texas legislature has enacted a law that injures innocent individuals, then to argue in court that it operates differently than it does in black and white,” Sadowsky said.
The state’s attorneys continued to argue that the plaintiffs would not be prosecuted under the law, a contention Sadowsky rejected, cautioning that future political shifts could change enforcement.
Nationwide Ripple Effect
Texas is among more than two dozen states that are going to restrict foreign control over land. As of early August, 22 such bills were pending in six states, according to advocacy group Committee of 100.
Federal authorities have also gotten involved. In July, US Agriculture Secretary Brooke Rollins said she would collaborate with states to restrict the acquisition of foreign land and review contracts. Though Chinese-owned property comprises less than 1 percent of all foreign-owned US land, political pressure on the issue is building.
Judicial battles against comparable legislation are unfolding in Florida, Arkansas, and Arizona with varied results. Some were halted, while others are still in place subject to appeal. Opponents caution that such laws threaten to foment anti-Chinese-American and other Asian-American racial bias, yet provide minimal substantive protection against espionage.
As SB17 approaches implementation, however, the battle in the courts is only just beginning and the property rights of thousands in Texas continue to hang suspended in a whirlwind of geopolitics.
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